Today (May. 5th), the market for grains in China is shown as follows:
Corn: Domestic corn prices stay stable with some further rises today. The price prevails at 1,866-1,990 yuan/tonne in Shandong. At Jinzhou port, Liaoning, 2018 new corn with 15% moisture of volume weight over 700 g/L is priced higher by 20 yuan from yesterday at 1,850 yuan/tonne. At Bayuquan port, 2018 new corn goes higher by 10 yuan at 1,830-1,840 yuan/tonne (volume weight 700 g/L). At Shekou port, Guangdong, second-class new corn is offered higher by 20 yuan at 1,980 yuan/tonne with some negotiating space.
Farmers have almost completed their corn sales in production areas, and the market expects that the auction will be in June in the earliest with its minimum price raised. Amid a longer “window period”, northeastern holders tend to hoard for price hikes in view of tightened supply. The price continues to go up by 20 yuan/tonne at north ports, and sees a rise of 10-20 yuan/tonne under the background of growing cost and declining stockpiles at south ports. Besides, the price is only 10 yuan below 2,000 yuan/tonne in Shandong. Corn price will maintain its strong trend before the release of state policies. Participants can focus on state policy after Labour Day vacation. Corn price will go further higher if the auction is delayed until June or even more late; but if not, it will suffer some risks.
Sorghum：
Imported sorghum prices see rises today. (U.S. raw sorghum: 2,120 yuan/tonne in Shanghai, 2,120 in Nantong and not offered for out of stock in Zhangjiagang and Guangdong; Australian sorghum: raw sorghum is unchanged at 2,130 yuan/tonne in Tianjin and 2,160 in Qingdao and , and goes up by 20 yuan/tonne to 2,200 in Shanghai and by 40 yuan/tonne to 2,300 yuan/tonne in Nantong, and dried sorghum is unchanged at 2,240 yuan/tonne in Tianjin and 2,300 in Qingdao).
Domestic sorghum prices go higher today. In Inner Mongolia, raw sorghum is not offered for out of stock and dried sorghum is unchanged at 2,060 yuan/tonne in Hinggan League; raw sorghum and dried sorghum are priced steadily at 1,980 and 2,080 yuan/tonne in Chifeng; and raw sorghum is priced steadily at 1,960 yuan/tonne in Tongliao. In Jilin Province, dried sorghum with freight is priced higher by 40 yuan at 2,200 yuan/tonne in Changchun, raw sorghum sacks and dried sorghum with freight are both up by 40 yuan at 2,100 yuan/tonne in Songyuan, bulk dried sorghum with freight is not offered in Baicheng, and raw sorghum is unchanged at 1,900 yuan/tonne and dried sorghum sacks at 1,980 yuan/tonne in Taonan. In Heilongjiang Province, dried sorghum with freight is priced higher by 40 yuan/tonne at 1,900 yuan/tonne in Qiqihar; raw sorghum and dried sorghum with freight are priced steadily at 1,880 yuan/tonne and 1,960 yuan/tonne in Daqing, and dried sorghum with freight 1,900 yuan/tonne in Heihe. In Shanxi Province, raw sorghum is unchanged at 2,100 yuan/tonne in Yuncheng, bulk dried sorghum with freight is priced steadily at 2,150 yuan/tonne in Jinzhong, and raw sorghum with freight and dried sorghum with freight remain unchanged at 1,960 and 2,160 yuan/tonne in Xinzhou.
Barley: Barley prices step down today. (Australian barley: raw sorghum remains unchanged at 2,220 yuan/tonne in Qingdao and and bulk raw sorghum is unchanged at 2,200 in Nantong; Canadian barley: raw barley is priced steadily at 2,120 yuan/tonne in Nantong and lower by 20 yuan at 2,120 yuan/tonne in Qingdao; French barley: raw barley is not offered in Nantong; Ukrainian barley: not offered in Guangdong).
Sorghum price is now dragged down by weak demand due to continued drops in corn prices. And importers with storage in hand tend to prop up prices in view of low barley inventories at ports and stubbornly high cost of Australian barley. Merely, port sorghum and barley have lost their price advantage against corn as its energy feed substitutes. And data from China’s Ministry of Agricultural and Rural Affairs confirmed 114 outbreaks (111 for hog and 3 for wild boar) of the ASF, with more than 916,000 pigs culled in total. This epidemic has roiled the original trend of hog cycle in China, as middle and small farmers withdrew from the market and geared up the elimination of breeding sow stocks since the first outbreak last August, and it has been fiercely cutting the pig number in those provinces reported with more outbreaks. Thus, it will be hard for farmers to rebuild confidence in short time as a fall in live pig and sow stocks has stricken a serious blow at the sector. Given this, grain market will be curbed by its later consumption. In addition, China has bought 65,000 tonnes of US sorghum, the first purchase since August last year. And amid trade talks between Beijing and Washington, participants can keep a close watch on whether China will open its market for US agricultural products. Generally, port sorghum and barley markets are predicted to keep steady with some fluctuations in the short term.
(USD $1=CNY 6.74)
